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Occidental prepares to unload assets to Oman Oil Company

22nd October 2014

Oman Oil Company is preparing to acquire assets from Occidental Petroleum in a move that could see key areas of production taken back under state control

Occidental prepares to unload assets to Oman Oil Company
Occidental announced last year that it plans to strategically reduce its footprint across the Middle East and North Africa

"We are now in negotiations with Occidental to buy their assets here in the sultanate," said Isam al-Zadjali, Oman Oil chief executive, to reporters on the sidelines of Oman Energy Forum 2014 in Muscat.

Occidental’s operations in Oman are concentrated at the Mukhaizna Field in south-central Oman, and the Safah and Wadi Latham fields and Block 62 in the north of the country.

"Now we are waiting for them to specify what exactly do they want from this deal. We are ready to buy the assets."

Occidental said in October last year that it planned to sell a minority stake in its Middle East and North African operations as part of a restructuring programme to lift its valuation.

Many US firms are readjusting to focus on North America’s shale boom.

Occidental announced last year that it plans to strategically reduce its footprint across the Middle East and North Africa.

“These are the first formal steps in our effort to streamline the business, concentrate in areas where we have depth and scale and improve overall profitability. Our goal is to become a somewhat smaller company with more manageable exposure to political risk,” said Stephen Chazen, Occidental president and CEO, last October regarding the MENA scale-down.

It was reported in July that the company attempted unsuccessfully to sell its entire Middle East offering in one sale.

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